Bootcamp Day 5: Goal Setting & Psychology in Trading

Welcome to Day 5 of the bootcamp, focusing on the foundational aspects of psychology and goal setting in trading. Today's session highlights the importance of having a disciplined mindset and an effective goal-setting process.

Key Concepts

• Psychological Aspect of Trading:

  • Emphasized by many mentors as a majority of what constitutes successful trading.
  • Importance of having a disciplined mindset to avoid common pitfalls.

• Goal Setting:

  • Focus on setting effective goals, similar to concepts learned in sports psychology, particularly basketball.
  • Aim to develop an X factor that helps transition from practice (demo) to real-world execution.

Goal Setting Methodology

1. Identify Long-term Goals:

   • Write down three long-term end goals (10-year horizon).
   • Examples: Managing six figures in a trading account, owning a $10 million house, personal milestones like buying a Lamborghini.
   • Emphasize life goals beyond trading.

2. Develop Short-term Goals:

   • For each long-term goal, create 10 short-term goals or steps.
   • Total: 30 short-term goals.
   • Examples include daily adherence to a trading plan, consistent risk management, and regular trade journaling.
   • Steps should provide a clear path towards achieving long-term goals.

3. Daily Action and Review:

   • Commit to daily completion of short-term goals.
   • Goals should be actionable and reviewed regularly to ensure alignment with long-term objectives.

Practical Application

• Writing and Vocalizing Goals:

  • Regularly write and vocalize goals with affirmations like "I am" or "I will".
  • Example: "I am a profitable trader."
  • Encourage embedding goals into the subconscious through repetition.

• Using a Notebook:

  • Keep a dedicated notebook for goal setting, writing down long-term and short-term goals.
  • Reinforce goals by writing them daily and reviewing progress.

Homework/Assignments

• Obtain a notebook and write:

  • Three long-term goals and corresponding short-term steps.
  • Transform it into a trading journal for ongoing use.

• Daily Routine:

  • Read and vocalize goals aloud daily.
  • Ensure actions align with the outlined steps to achieve goals.

• Mindset Check:

  • Embrace confidence in vocalizing goals and avoid embarrassment.
  • Consistent effort and focus on goals are key to achieving success.

Conclusion

Today's session stressed the importance of a structured and disciplined approach to goal setting in both trading and personal life. By setting clear, achievable steps, participants are encouraged to progress towards their long-term aspirations, and actively engage in the bootcamp's objectives.

Next Steps

• Continue following the bootcamp for further guidance on building a profitable and disciplined trading practice.
• Work on the assigned homework and be prepared to discuss insights in the next session.